Czech Republic: Manufacturing PMI opens year on high note
February 1, 2017
The Manufacturing Purchasing Managers’ Index (PMI) for the Czech Repubic produced by IHS Markit rose from December’s 53.8 to 55.7 in January, marking the best result in one year. The indicator therefore moved further above the 50-point threshold which separates expansion from contraction in the manufacturing sector.
January’s increase reflected faster growth in production, new orders and job creation. Output growth accelerated from the previous month and hit a 12-month high, on the back of a stronger inflow of new orders, which grew at the fastest pace since February 2016. On the external front, new export orders also increased, especially from European markets and the U.S. Employment continued to rise, and achieved the strongest expansion since January 2016. Manufacturers’ purchasing activity also grew, and at a stronger pace than in December. Regarding price developments, output prices grew at the fastest pace since December 2013, mainly on the back of higher prices for metals and oil-related items.
Trevor Balchin, Senior Economist at IHS Markit, commented that, “the first release of PMI data for 2017 revealed a strong performance from Czech manufacturers […]. The manufacturing data follows on from better-than-expected retail sales figures for November.”